Kraken Clarifies Changes due to the Ethereum Hard Fork
The hard fork is upon us and exchanges that deal with Ether are reaching out to users as they usher in a new system of change.
Last week, Kraken sent out an email notifying users that withdrawals and deposits will be disabled for one hour before the hard fork. Because their original email statement was written from the standpoint of a “winner takes all” scenario with the non-dominant chain dying out fairly quickly, this led to some confusion and concern. To clarify the case, Kraken just released a full-length blog on the hard fork and its impact on Kraken users.
Kraken assures users that while the process will go smoothly and quickly, they want everyone to understand that they’re being cautious and will wait for a clearly dominant chain to emerge before enabling their ETH and DAO funding again. This could take up to several days to be on the safe side. Kraken warns users not to send any Ether or DAO deposits to Kraken until they’ve enabled their deposit system again. They’re also taking steps to ensure that all users’ balances on both chains are secure against any replay attack. Expert users may read Kraken developer, Timon Rapp’s, technical guide on dealing with the replay attack.
For private wallets, Kraken advises users to update their Ethereum client to Geth v1.4.10. They also extend caution to private wallet users who care about funds on both chains, to not to send any transactions during (and even for a while after) the fork, to Kraken or anywhere else due to the danger of a replay attack. For those who only care about funds on the dominant chain, they do not have to worry about the replay attack, and will be able to send transactions after the fork has been put in place.
Kraken is also currently unsure if they will offer markets for the non-dominant chain after the fork. While they haven’t ruled the possibility out, they do not at the present time intend to offer trading markets for the non-dominant chain, at least not until they feel it is safe to do so.
Margin positions will also be closed during the fork since it may bring a lot of unpredictable volatility or other unusual market behavior that can make margin trading much riskier than normal. DAO funding on Kraken will also be offline during the fork and users should not send any DAO transfers to Kraken during this time.
Kraken is doing their best to make this transition as smooth and safe as possible for their users. To read the more comprehensive Kraken notice, you may do so here.